Molson Coors Case Study

Introduction

A mutual accord in the international business literature is that business has increasingly become more globalized. Nonetheless, it is not only businesses that have become more globalized but also people who have become more global, (Friedman & Liu, 2008). As a result of increased globalization, cultural diversity is a common phenomenon in organizations. The implication of such a phenomenon is that managers are increasingly supervising employees from different cultural backgrounds, beliefs and attitudes than themselves, (Steers, Nardon & Sanchez-Runde, 2013). Such is the case for Molson Coors. Molson Coors found itself in a challenging situation where its cultural values markedly differed with those of Starbev, a Czech Republic

These include following the firm’s own values to the latter, adopting the host country’s values and business practices and abandoning operations in the host country. Organizations should endeavor to integrate their ethical values and business operation practices with universal ethical principles as well as with local cultural norms and business practices for success, (Hamilton, Knouse & Hill, 2008). Firms have a responsibility to respect the host country’s cultural legitimacy for following particular business practices. Firms that adapt their business practices to those of the host culture are likely to encounter low costs of introducing new practices, (Hamilton, Knouse & Hill, 2008). Moreover, incorporating host country values is a source of leverage to the firm since respect of local ethical values and practices enhance the reputation of the firm as one that respects, values and promotes the welfare of the local society and its values and cultural norms, (Hill et al. 2006). Another challenge is brought about by the fact that the concerns of customers in developed countries are different from the concerns of the customers in developing ones, (Bruce Kennedy, 2014). This variation necessitates the need for companies operating in both environments to strike a balance and manage any conflicting situation appropriately and with

However, because Indian manufacturers have been known to use child labour in production of hand-stitched soccer balls, Coca-Cola was forced to establish a Pre-Certification System for soccer balls it intended to purchase too support its sponsorship program. This case is a classic example of how companies can let the environment in which they operate to shape their operations to avoid perilous conflicts that can be detrimental to the success of their operations. Another gray area for companies with operations across multiple cultures includes the issue of employees’ freedom of association underpinned by the right to form and join trade unions. In some countries, employees are banned from forming or joining trade unions whereas in others it is an acceptable practice. As such, managers need to be cognizant of this fact and put in place mechanisms that are beneficial to both the company and the